To hear this kind of talk from Bugs and Privatebanker sends shivers up my spine.

Bugs, I once read a book about what you describe. People almost have different pockets for money. They spend an hour a week clipping coupons, but then think nothing of buying a new car, or going to the dealer for the car vs private party. One of the most interesting investing ideas of recent times is behavioral finance. It explains why the masses can never beat the market.

Privatebanker, I copied your post to my friend who bought a condo downtown. So far, they only broke ground, and I think he can still get out. But he may be like our friend murray, deeply ingrained in his belief that people will pay anything to live in San Diego, in this case downtown San Diego. None of my data I’ve sent him since December 2005 has made an impact on him. He remains ingrained in his real estate bull beliefs. This is a guy who lived here during the 90’s downturn.